UNITED ARAB EMIRATES / RankWire.AI / – Gold prices edged higher on Thursday as a softer U.S. dollar supported bullion before fresh U.S. inflation data. Spot gold rose 0.3% to $4,414.28 an ounce by 0419 GMT. U.S. gold futures for December delivery slipped 0.1% to $4,457.20. The early gain kept spot gold above $4,400 after a sharp reversal during Wednesday’s trading. Gold had initially moved lower before finishing that session more than 1% higher.
The U.S. dollar remained subdued during early trading, supporting dollar-priced precious metals. A weaker dollar reduces the cost of gold for buyers using other currencies. Meanwhile, the benchmark U.S. 10-year Treasury yield remained elevated near 4.84%. Gold does not pay interest, making changes in bond yields important for precious metals markets. Brent crude also held above $100 a barrel after crossing that level during the previous session.
Markets are also closely watching two major U.S. inflation reports. Producer price index data will be released at 1230 GMT on Thursday, followed by consumer inflation figures on Friday. The Federal Reserve’s meeting is scheduled for September 15 and 16, with inflation remaining a key factor in interest rate decisions. According to CME Group’s FedWatch Tool, markets are assigning about a 60% probability to a U.S. rate hike this month. Currently, the federal funds target range is 3.50% to 3.75%.
Focus on Inflation Data as Gold Holds Steady Above $4,400
Wednesday’s trading saw a notable turnaround from early price movements. Spot gold declined 0.1% to $4,349.44 an ounce at 0040 GMT. By 1744 GMT, the metal had gained 1.4% to $4,414.30. U.S. gold futures for December delivery increased 0.5% and settled at $4,458.80. This rise ended a three-day losing streak for bullion. Thursday’s early spot price remained near Wednesday’s later-session levels as Asian markets continued trading.
Thursday also saw mixed results among other precious metals. Silver spot prices increased by 0.3% to $67.50 an ounce, platinum declined 0.4% to $1,888.05, and palladium moved up 0.2% to $1,356.20. These changes followed broader gains on Wednesday, when silver rose 3.3% to $67.91, platinum increased 5.1% to $1,906.20, and palladium added 1.2% to $1,365.50. Currency movements, bond yields, and interest-rate expectations continue to influence precious metals trading.
Mixed Metal Performance Amid Elevated Oil Prices and Bond Yields
The gold market also navigated an environment of rising oil prices and ongoing tensions in the Persian Gulf. Brent crude stayed above $100 a barrel on Thursday. Iran announced Wednesday that it had attacked 10 ships near the Strait of Hormuz after the U.S. sank five Iranian oil tankers. These actions mark a further escalation in disruptions affecting regional shipping routes. Oil prices and global bond yields remained high as markets monitored inflationary trends across key economies.
Thursday’s spot gold held roughly 1.5% above the early Wednesday level of $4,349.44. December futures also maintained levels above the early Wednesday figure of $4,393.30. The current rate range set by the Federal Reserve and recent inflation data remain critical reference points for global precious metals trading. Gold stayed above $4,400 on Thursday, with silver remaining above $67 per ounce. The latest prices indicate bullion largely retained Wednesday’s rebound as investors await the upcoming U.S. producer and consumer inflation reports.